DeFi Platforms to Explore in 2021

DeFi platforms have been providing exciting investment opportunities since the innovation’s early days in 2017. They offer better returns and an enhanced user experience. In 2020, in particular, DeFi platforms earned their reputation through top-notch security and optimal ROIs. DeFi Pulse indicates that the value of decentralized finance projects rose by 2 000 percent during this period.  

However, not all DeFi platforms guarantee you the desired benefits, such as optimal RIOs. In this article, we consider the platforms that you can explore in 2021 if you want to reap the most from decentralized finance.

What is DeFi?

Decentralized finance or DeFi is a common term today in the cryptocurrency world that denotes financial services that use smart contracts. You can consider it as an integration of traditional banking services with blockchain or other decentralized technologies.

So, since you rely on automated enforceable agreements (smart contracts), you don’t need intermediaries such as lawyers and banks to invest, borrow, withdraw, lend, trade, or buy insurance.

DeFi depends on decentralized apps or platforms. Here are the top DeFi platforms that you likely need to explore now.

Defi Yield Protocol (DYP)

DYP deserves your attention in2021 since it is one of the top contenders in terms of ROIs. It has features including notable mining pools and yield farming protocols. Moreover, it pays rewards in ETH, which is an exceptionally unique case. Other decentralized finance platforms pay in DeFi tokens.  

With the ability to pay in ETH, DYP offers you the following benefits:

  • No need to convert your rewards to ETH
  • Quick withdrawal of rewards
  • No conversion fees

DYP features a reliable proprietary anti-manipulation system. It does the following:

  • Automatically converts DYP rewards at 00.00 UTC daily
  • Monitors the DYP token’s price
  • Helps to preserve the token’s value

This DeFi platform effectively stops market manipulation.

DYP has a decentralized governance system, which works in tandem with the anti-manipulation protocol. It gives DYP token holders voting rights to determine whether to redistribute or burn the extra tokens. For that matter, the platform provides the community with special control measures.

The network features DYO Farming, which makes it function like a traditional digital currency. If you have a compatible wallet, you can send and receive the token from any part of the world in seconds, given that it supports automated farming contracts.

From 2021, DYP will feature the Ethereum mining pool, which allows miners to join with 0% fees. As a mining pool user, you also get a 10% monthly bonus of the income. The platform plans to distribute five million DYP to miners during its launch.

Sync Network

This is another innovative and profitable DeFi platform. It is a new project that comprises ERC-20 and ERC-721 contracts. With these two contracts, the SYNC Network introduces a new and innovative way to trade in cryptocurrency while protecting liquidity.

The DeFi platform requires users to add 50% SYN tokens to each ERC-721(Crypto Bond). This ensures that the tokens and the liquidity remain stable. As you do this, you can get better rewards with Crypto Bonds.

The SYNC platform strengthens cryptos by:

  • Safeguarding users’ wallets
  • Incorporating research markets
  • Giving users the freedom to create Crypto Bonds with lots of tokens consisting of at least 150 liquidity pairs

Yearn Finance (YFI)

Yearn Finance emerged on the blockchain in early 2020, making it one of the newest and most promising DeFi DApps. This brainchild of Andre Cronje is a yield aggressor that handles all the yield farming on your behalf. It maximizes ROIs via interoperability.

The open-source protocol works by circulating the user’s locked cryptocurrency to secure the most impressive interest rate. It switches the funds between different DeFi lending apps such as Aave, dYdX, and Compound.

YFI uses Vaults to allow individuals to use any digital asset as liquidity. You can opt for this platform when you are looking for an opportunity to:

  • Use liquidity as collateral
  • Manage collateral safely and avoid default
  • Lend stablecoins with interest
  • Borrow stablecoins with interest
  • Yield farm with stablecoins in the platform

So, Yearn Finance offers a high degree of flexibility, and that could be what you need to achieve your financial goals in 2021. It is also convenient to use and affordable.

NFTfi

NFTfi platform merges the most appealing aspects of DeFi and the non-fungible tokens in the sector. This hybrid network is popularly known as a peer-to-peer marketplace for cryptocurrency loans. It uses NFTs as tokens. These digital assets are blockchain verifiable, and ERC-721 is the most popular among them.

Borrowers can use NFTs as loan collateral. As such, it gives anyone who owns unused or inactive cryptocurrencies an opportunity to secure short-term digital currency loans. When you repay your loans with interest, the system unlocks your NFT.

NFTif also allows lenders to browse through a wide selection of tokens whenever they want. They then select the amount they are ready to lend and then make an offer. If the borrower accepts it, the system locks the NFT in a smart contract.

SYNthetix

Synthetix is another top DeFi platform that may change your financial prospects. It ranked position seven in terms of market capitalization in early July 2020. This unique DeFi platform still has great potential due to its viable features.

Synthetix empowers users to speculate on the cost of crypto assets, precious metals, fiat currencies, stocks, and other real-world assets. The platform uses Synths, which are digital assets that represent real-world resources.

Synthetix also features the incentivized staking mechanism, which enables users to provide liquidity. Moreover, it runs under the Synthetix Network Token, which you can find on a wide variety of exchange platforms. To use the app in staking, you should deposit the required amount of tokens.

Wrap Up

As the demand for DeFi continues to grow in the present century, decentralized finance platforms are becoming more prevalent. They offer more benefits than conventional apps. WithDeFi platforms, you have complete control over your funds and can pay ultra-low transaction fees. So, you can choose Dapps that best suit your needs to start reaping the benefits of DeFi.